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Alibaba Makes $1.22 Billion Bet on China's Online Video Market

E-Commerce Company Buys 18.5% Stake in Youku Tudou

By

Paul Mozur And

Juro Osawa

April 28, 2014 12:25 p.m. ET

BEIJING—Alibaba Group Holding Ltd. is making a $1.22 billion bet on China's booming online video market, just as Beijing shows its own interest in having more control over the sector through a clampdown on programming.

The Chinese e-commerce giant and a fund set up by its founder Jack Ma said Monday they are spending $1.22 billion to buy an 18.5% stake in China's Youku Tudou Inc., an online video company that works like a combination...